The Hindu Business Line : Financial Tech, Horizon among 7 eyeing DSE stake

New Delhi, July 18 Financial Technologies India Ltd (FTIL), US-based Horizon Assets Management Co Ltd, and Noor Investments Ltd (Kuwait) are among the seven parties which have expressed interest in picking up 5 per cent stake each in the Delhi Stock Exchange (DSE), which is one of the oldest stock exchanges in the country.

As part of efforts to revamp the trading platform and revive the operations of the exchange, DSE has also decided to engage FTIL as its service provider. “FTIL will provide the technology and design, build and operate the platform for us,” Mr Bharat Bhushan Sahny, Chairman, DSE Demutualisation Committee, told a press conference here today.

Citing confidentiality arrangements, Mr Sahny declined to name the other four which have expressed interest in picking up 5 per cent stake in DSE. However, sources said that a foreign institution and domestic corporate groups such as Liberty Group and TV18 Group have expressed interest in participating in the demutualisation process of DSE.

SEBI norms

As per SEBI guidelines, no person or person in concert can take more than 5 per cent of the equity capital of a stock exchange. On the valuation of the 5 per cent stake, Mr Sahny said that all the EoIs have been made at an enterprise value of between Rs 400-500 crore.

“Although we have received bids at enterprise value between Rs 400-500 crore, our board will fix a cut off rate. That would form the basis for allotment of shares to all bidders. All the seven will get shares at the same price,” the chairman said.

He also indicated that DSE would list itself in a stock exchange to provide an exit opportunity for the investors in the exchange.

Mr Sahny also said that DSE, which has not seen any trading in the recent years, would strive to commence operations in about 100 days from the date the new management takes over.

On whether the stock exchange was confident of meeting the SEBI deadline of August 28 for completing the demutualisation exercise, DSE members said that they were “fairly confident” about meeting the deadline.